Montenegro has secured €89.3 million in EU Growth Plan funding and is awaiting approval of another €97.3 million, with the financing intended to support structural reforms, public investment and preparations for EU membership.
€383.5 Million Total Allocation
European Affairs Minister said the amount already received had been released through pre-financing and three instalments under the EU Reform and Growth Facility. Montenegro has a total allocation of €383.5 million under the programme.
The government submitted its latest reform implementation report in July, assessing progress at approximately 90% of the relevant commitments. The European Commission must verify the reported results and approve the next payment before the additional €97.3 million can be disbursed.
The programme covers the period from 2024 to 2027 and combines €110 million in grants with approximately €273.5 million in concessional loans. Of the total allocation, €178.5 million is intended for budget support, while approximately €205 million is designated for infrastructure investment through the Western Balkans Investment Framework (WBIF). A previous instalment of €44.2 million, approved in May 2026, comprised €20.6 million in direct budget support and €23.6 million for infrastructure projects.
Financing Linked to Structural Reforms
Further payments are linked to reforms in the business environment, digital transformation, energy transition, human capital and the rule of law. The government intends to use the financing for public services, schools, kindergartens and infrastructure, while improving conditions for private investment and employment.
The infrastructure component is relevant to construction, engineering and financial companies involved in project preparation, procurement and implementation. The allocation of EU funding does not mean that individual project contracts have already been awarded.
Montenegro requires substantial investment in transport infrastructure, energy transition, public services and environmental compliance. The government expects progress towards EU membership to strengthen investor confidence in tourism, energy, agriculture and infrastructure.
Business Competitiveness and Public Debt
Gorčević said the reform process should also improve the competitiveness of domestic companies ahead of their eventual participation in the EU single market. Small and medium-sized enterprises account for approximately 76% of Montenegro’s value added and more than half of employment.
The government and the Chamber of Economy are developing measures to help businesses meet European requirements through certification, digitalisation and access to international business networks.
Public debt stood at 58.5% of GDP at the end of June 2026, while net debt was approximately 52%, according to Finance Ministry figures cited by Gorčević. EU grants, concessional loans and domestic budget resources are expected to provide financing for investment, although borrowing under the programme still carries repayment obligations. If the European Commission approves the full additional €97.3 million, Montenegro’s cumulative receipts under the programme would reach €186.6 million, representing almost half of its total €383.5 million allocation.
